The New Zealand dollar strengthened today after the report showed that the inflation in New Zealand accelerated in the third quarter of this year, allowing the kiwi to gain versus 14 of 16 most traded currencies.
The New Zealand Consumer Prices Index rose 1.1 percent in the third quarter of 2010, compared to the 0.2 percent growth in the second quarter and the expected 1.0 percent increase. John Key, the Prime Minister of New Zealand, said that the strong currency would hurt the exports, yet the business confidence and the employment should improve. He doesn’t plan the intervention as it “does not work”.
Alan Bollard, the governor of the Reserve Bank of New Zealand, left the borrowing costs unchanged on September 16th. He also cut his outlook for the economic growth on the signs of the weak domestic spending and the slowing global demand.
NZD/USD rose from 0.7548 to 0.7561 as of 21:23 GMT today, while EUR/NZD fell from 1.8502 to 1.8427.
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